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Report results for Urban Land Institute's Infrastructure 2009

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  1. 1. Infrastructure 2009 Pivot Point
  2. 2. Welcome to Infrastructure 2009: Pivot Point An analysis of global infrastructure issues by the Urban Land Institute, sponsored by Ernst & Young.
  3. 3. U.S. and the World: at a “Pivot Point” We face a historic opportunity to fundamentally rethink how we plan, fund and build infrastructure
  4. 4. The Bottom Line- We Need: A long-term infrastructure strategy Revamped government: national, regional, and local vision, planning and discipline To do things in more integrated way To change the way we pay for infrastructure
  5. 5. The Infrastructure Challenge Financial and housing crisis Global competition Years of underinvestment Aging and stressed infrastructure Growing congestion Freight bottlenecks Oil dependence Climate change Water scarcity and pollution
  6. 6. Infrastructure Life Cycle
  7. 7. Coasting: U.S. Infrastructure Spending Lags GDP Growth
  8. 8. Stimulus Spending: Just Patching the Holes Short-term stimulus funding is no substitute for a long-range infrastructure strategy $132 billion is not enough, but it is a lot Are we spending it wisely? Infrastructure Incentives and Spending in U.S. Economic Recovery Bill Transportation $48.0 Billion Energy $69.8 Billion Water $14.6 Billion Total $132.4 Billion
  9. 9. Aging and Stressed Infrastructure ASCE: U.S. roads, public transit, aviation and water systems in bad shape Estimate: $2.2 trillion needed over five years to repair the nation’s infrastructure Local infrastructure decisions are key
  10. 10. Water Challenges Rapidly expanding population centers in the West and Southwest are running out of water Older cities face costly retrofits of aging water infrastructure
  11. 11. The U.S. Contributes to Climate Change
  12. 12. The Opportunity New leadership Population growth New “smart” technologies Support for rail and transit Enthusiasm for urban living Federal transportation and climate change bills Local initiatives and global lessons
  13. 13. Population Growth: Both a Challenge and Opportunity U.S. will add 110 million between 2010 and 2050 West and Southwest will lead U.S. growth Many other countries will experience population declines
  14. 14. Smart Technologies New smart meters and peak time-based rates help change consumer behaviors Technologies like Global Positioning Systems (GPS) enable new ways to pay for and manage infrastructure
  15. 15. Urban Momentum
  16. 16. The Next Big Opportunity: Reforming Transportation Policy Current surface transportation law expires in the Fall, 2009 What should the next bill do better? Promote more compact land use Provide incentives for more creative approaches to land use, including zoning and parking Change the financial equation
  17. 17. Learning from the Leaders
  18. 18. Local Support for Denver FasTracks Rail: Denver System Map FasTracks: 122 miles of new transit investments Voters approved sales tax increase in 2004 Goal: encourage transit- oriented high- and mid-rise development Will open in phases between 2013 and 2016
  19. 19. Bus Rapid Transit What is Bus Rapid Transit? Bogota, Colombia High-capacity vehicles 1 million riders on 52 mile system Dedicated rights of way Guangzhou, China Off-vehicle fare collection New 14 mile line to service 600,000 Floor level loading passengers daily Will shave 1 hour off of round-trip Information technology systems commutes Enclosed stations Chicago, Illinois 100 mile system planned to boost city’s bid for 2016 Olympics “It’s a way to provide speed and reliability closer to rail service [but] without the costly infrastructure.” - Chicago Mayor Richard Daley
  20. 20. Creative Parking Solutions Underutilized parking space translates into lost land use opportunities Eliminated/reduced parking minimums Parking maximums Shared parking and shared cars Automated parking elevators Parking rate schemes/ sophisticated metering
  21. 21. Canada Innovates With PPPs Building Canada Plan: 7-year program to reconstruct and expand infrastructure, begun in 2007 Canadian government supports public/private partnerships All projects seeking > $40 million in federal funding must consider PPP Federal PPP Canada, Inc office supports and coordinates PPPs
  22. 22. Europe Links the Continent with Infrastructure Europe moves forward with ambitious continent- wide TENs program Transportation Energy Telecommunications United Kingdom pushes ahead with the $23 billion Crossrail project in London
  23. 23. China Makes Massive Infrastructure Investments China plans 50,000 total miles of highways Rail investments: high- speed rail between Shanghai and Beijing, freight lines, intercity rail Transit systems in all big cities
  24. 24. It’s Time to Seize the Momentum!
  25. 25. Adopt a Four Pronged Approach 1 Develop a National Strategy 2 Plan Holistically 3 Revamp Government 4 Change Funding Equation
  26. 26. Develop a National 1 Strategy Establish high level commission to set national objectives and establish priorities Invest in global gateways and national assets like high speed rail, freight and ports
  27. 27. Invest in High Speed Rail President Obama supports high speed rail
  28. 28. 2 Plan Holistically Better water management requires: Greater coordination Increased conservation Balancing of local property rights Rate hikes
  29. 29. Reconfigure Existing Suburbs Develop pedestrian-friendly town centers Create new transportation patterns and transit options Rockville, MD reconfigures low-density strip development into walkable, mixed-use suburban villages
  30. 30. 3 Revamp Government Federal, state and local governments must manage and execute infrastructure in concert Restructure agencies to break down silos Formulate effective long- range regional plans, tie into national networks
  31. 31. Invest in Multimodal Solutions
  32. 32. 4 Change the Funding Equation Make infrastructure costs more transparent Adopt smart technologies to save money & spur change Establish an American Infrastructure Bank
  33. 33. There’s No Free Lunch Many costs are hidden but total costs can be staggering Need to make total costs more transparent Need to shift funding to users
  34. 34. U.S. Gas Among World’s Cheapest; Gas Prices Can Change Development
  35. 35. Adopt Innovative User Fees Tolling, congestion charging, and Vehicle Miles Traveled charges can encourage optimum use of infrastructure
  36. 36. Establish American Infrastructure Bank Leverage public and private Established 1958 investment $52 billion in annual lending Develop and finance national Funding supports EU priorities: economic and significant and large-scale social cohesion, mobility regional infrastructure projects and connectivity, and reduced carbon emissions De-politicize the project selection Financing capped at 50 process percent of total investment costs Develop best procurement Helps lower risks for other investors practices
  37. 37. You Be the Judge: Infrastructure Scorecard Win Loss National long-term Short-term decisions strategy Innovative revenue Highway Trust Fund generating schemes sinks into insolvency Multimodal One-off, single- programs mode projects Integrated planning Independent silos & and execution little coordination Infrastructure Bank Bank legislation created languishes Check all that apply
  38. 38. We’ve Reached a “Pivot Point” Prosper by Face more making better gridlock, investment congestion & decisions? systemic failures? The Choice is Ours
  39. 39. Thank you!